Skillsvest Raises ₹5.5 Cr to Replace Education Loans with ‘Pay-Only-If-You-Earn’ Model

Fintech platform Skillsvest has announced the closure of its ₹5.5 crore pre-seed funding round, comprising a mix of equity and debt, to expand its mission of supporting students as an asset class and offering an alternative to traditional education loans.

The round saw participation from Plug and Play Ventures, along with angel investors including Sascha Mornell, a serial entrepreneur with over $2 billion in exits. It also included a debt syndicate comprising multiple smaller angel contributors. Skillsvest is further backed by global accelerators such as UC Berkeley SkyDeck and Launch Accelerator.

The platform is designed for international master’s students from middle-income backgrounds who often face the difficult choice of taking on education loans that can exceed their family’s net worth or forgoing global education opportunities altogether.

Skillsvest addresses this gap through a “pay only if you earn” model, where repayments begin only after a student’s income crosses a defined cost-of-living threshold. Repayments are capped, time-bound, and require no collateral or co-signer.

Currently focused on Indian students pursuing master’s programmes abroad, Skillsvest supports both tuition and living expenses, with funding typically ranging from $5,000 to $20,000, and plans to expand this range over time. Key destination markets include the UK, US, and Europe, particularly in high-demand fields such as STEM and finance.

The company is led by Sreemaan Thiruppathiraja and Deborah Schermann, both graduates of University of California, Berkeley. The founding team brings experience across credit, finance, and startups.

Sreemaan previously worked with Deutsche Bank’s illiquid credit team in the UK, while Deborah has led over $1 billion in debt transactions at Germany-based infrastructure investment bank HKCF. Both founders have also held roles at global edtech firms such as BYJU’S and KnowBe4.

To date, Skillsvest has deployed over ₹1.2 crore, built a waitlist of more than 3,000 students, and established a distribution network through partnerships with over 4,500 college counsellors across India.

Early funded students have secured admissions to institutions such as INSEAD, University of Cambridge, and University of St. Gallen, with professional backgrounds spanning organisations like Amazon, EY, BNP Paribas, and Klépierre.

Speaking on the announcement, Deborah Schermann, COO of Skillsvest, said, “Skillsvest exists to ensure that talented students, regardless of their financial background, can access the world’s best education.”

Sreemaan Thiruppathiraja, CEO of Skillsvest, added, “If we do this right, a student from a Tier-2 town with limited financial means but strong potential will have the same opportunity as someone from the top 1%. This funding enables us to scale access, strengthen regulatory readiness, and deepen partnerships that improve career outcomes.”

Investor Sascha Mornell highlighted the long-term vision behind the investment, stating, “Sreemaan’s clarity, ambition, and execution stood out immediately. Together with Deborah, they are building a new investable asset class while addressing structural inefficiencies in education financing through a model aligned with real earning potential.”

The company plans to utilise the funds for student financing, regulatory and compliance readiness, and expanding go-to-market and partnership efforts. Over the next 12-18 months, Skillsvest aims to support 50–100 students while strengthening relationships with recruiters and mentors to improve post-education career outcomes.